How to Calculate UAE End-of-Service Gratuity
Calculate UAE private-sector end-of-service gratuity using basic salary, completed service and the official rules that apply when employment ends.
The direct answer
UAE end-of-service gratuity for an eligible private-sector employee is generally based on the last basic salary, not the total package. The official calculation depends on completed service, contract status and how employment ended. An online estimate is useful, but the employer’s final settlement should show the actual service dates and basic-pay figure used.
A practical checklist
1. Confirm the law and worker category
Check that the employee is covered by the federal private-sector labour rules. Domestic workers, government staff, free-zone arrangements and employees enrolled in an approved alternative end-of-service scheme can follow different rules.
2. Use completed continuous service
Build the timeline from the legal employment start date to the last working day. Periods that the law excludes from service, including unpaid absence in relevant circumstances, should not be counted casually.
3. Calculate from basic salary
Use the last basic wage recorded in the contract and payroll, then apply the official entitlement bands for the completed years and eligible fraction of a year. Do not add housing, transport or other allowances unless the governing rule specifically includes them.
4. Reconcile the final settlement
Compare gratuity with unpaid salary, leave balance, notice pay, deductions and any scheme balance. Ask for a written breakdown and raise a MOHRE complaint promptly if a material amount remains unexplained.
Important: A resignation, termination, fixed-term expiry or alternative savings scheme can change the settlement analysis. Do not rely on a calculator that asks only for total salary.
Before you act
The official UAE portal explains gratuity for nationals and expatriates and notes that temporary employment lasting less than one year does not attract the ordinary gratuity. Keep the signed contract, wage records and cancellation documents.
Official source and review note
Dubai Daily Guide reviewed this article on 12 October 2026 against UAE Government — End-of-service benefits for private-sector workers ↗. Check the live service before acting because eligibility, documents, fees and processing steps can change.